In the third article in our series on sectional title properties we aim to explain what powers the Body Corporate has. People often confuse these powers with that of Trustees and great uncertainty exists concerning who has a right or authority to do what.

The powers of the Body Corporate:

  1. The Body Corporate can appoint agents and employees in order to fulfill its functions.

  2. In order to fulfill its duties a Body Corporate can buy, rent or let out units and take transfer of mortgages.

  3. The Body Corporate has the power to establish (in addition to its obligation to maintain) common property. This means that the Body Corporate can, for example, plant lawns or create recreational gardens.

  4. It may invest any money that it receives.

  5. The Body Corporate has the power to make and repay loans and may take out mortgages on properties vested in it.

  6. The Body Corporate can enter into agreements with the local authorities to supply electricity, gas, water or other services to the complex. They may also negotiate with authorities regarding repayment of debt as is often seen in areas under rehabilitation.

  7. The Body Corporate has the power to enter into individual agreements with the owners. A common example is when the Body Corporate lets out the parking garages and lockup garages it owns to the owners or tenants. The Body Corporate may also let out any area of the common property.

  8. The Body Corporate must lay down the rules governing the sectional title complex. It is also obliged to take reasonable steps to enforce those rules.

It is clear that the Body Corporate has extensive powers, a fact that may put off some people from buying into a sectional title scheme. One needs to think carefully about whether you are comfortable with the Body Corporate and the power it wields before entering into a sectional title. Be reminded, however, that, as an owner, you will be part of the Body Corporate.

The Body Corporate may, and often does, delegate some or all of its powers to the Trustees. This is where, more often than not, confusion reigns. Many falsely believe that the Trustees are the ‘highest’ authority in a sectional title scheme when in fact ultimate responsibility for and control of the sectional title complex always rests with the Body Corporate.

Subsequent articles will deal with Trustees, but in the next one we will explore the responsibilities of the individual owners and other parties in a sectional title scheme.

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